(Photo: Andrey_Popov/Shutterstock.com)

It's been a busy few months at Pennsylvania's midsize law firms.

Recruiters across the state say they have noticed a strong appetite for hiring among midsize firms in recent months. That's showing through in several moves this summer, including some musical chairs between midsize firms.

Philadelphia-area legal recruiter Liz Shapiro said she has noticed a lot of demand from midsize firms of late.

"I have several midsize [firm] candidates in play to go to other midsize firms, as well as mid to go to larger, and small to go to larger. I have demand across most practices with labor [and] employment and transactional being busiest," she wrote in an email.

Steven Kruza, of Kruza Legal Search in Philadelphia, said hourly rates are "at the heart of the matter" as firms fight for midmarket clients.

"Lateral movement between peer firms is much more frequent because significant rate increases are not required," he wrote in an email. "We have also noticed intense competition for lateral talent between these midsize Pennsylvania-based firms, which is a direct result of the increased competition in recent years in this space for market share."

Pittsburgh legal recruiter Maura McAnney of McAnney, Esposito & Kraybill Associates made a similar observation, noting that local and startup clients are moving to more affordable rate structures that midsize and smaller firms can provide.

"We are seeing greater demand than ever before. In addition, certain practice areas, like labor and employment, are moving to more affordable rate structures for day-to-day matters, most likely based upon the heavy competition from pure labor and employment firms," McAnney wrote in an email.

In a recent interview, Jeff Grossman of Citi Private Bank noted that midmarket transactional work has continued to fuel legal work, which has been an advantage for the Pennsylvania law firms that serve midmarket clients.

However, Grossman noted, revenue growth at regional, boutique and niche firms across the country, on average, was behind average revenue growth for the industry as a whole in the first half of 2019.

"Last year for many firms was a record year. This year we don't have the same demand level or work level … but if you look at this year in the context of a longer history, 2008 to 2018, this is a good year," Grossman said.

Moves Around the State

Most recently, Post & Schell brought on two principals this week. Heather Tereshko joined the firm's professional liability department, coming from fellow Philadelphia-based firm Marshall Dennehey Warner Coleman & Goggin, where she was special counsel. She had previously worked at Post & Schell as an associate from 2003 to 2012.

Kevin FitzPatrick, director of the health care department at Marshall Dennehey, said in an emailed statement: "Heather was an asset to our health care team and we were sorry to see her leave but wish her nothing but the best in her new position."

The firm also added Kerry Maloney in its professional licensure and regulatory administrative agency law practice groups in Harrisburg. He was a lawyer for the Pennsylvania Department of State for 17 years.

Those two hires came on the heels of news that Weber Gallagher Simpson Stapleton Fires & Newby added to its Pittsburgh office by bringing on three lawyers from Post & Schell, as well as another Pittsburgh associate from Robb Leonard Mulvihill and a fifth lawyer from LeClairRyan in New York.

Obermayer Rebmann Maxwell & Hippel brought on a string of lateral hires starting in June, making additions from local firms Dilworth Paxson, Eastburn and Gray and MacElree Harvey, as well as mid-Atlantic firm Offit Kurman and Houston-based Chamberlain Hrdlicka White Williams & Aughtry.

In the late spring, Klehr Harrison Harvey Branzburg brought on Hercules Grigos, who had been head of the zoning and land use practice at Obermayer Rebmann.

A longtime Stradley Ronon Stevens & Young partner and former real estate practice chair made a move to Conshohocken-based Royer Cooper Cohen Braunfeld earlier this month.

In early July, a longtime Philadelphia litigator joined Hangley Aronchick Segal Pudlin & Schiller from Pepper Hamilton, and Harrisburg lawyer William Fetterhoff merged his solo practice in to 14-lawyer Myers Brier & Kelly.

Targeted practice growth and out-of-state expansion have been in some firms' strategies. In June, Pittsburgh-based Babst, Calland, Clements and Zomnir acquired an oil-and-gas firm in Texas, while Saxton & Stump, Bardsley Benedict + Cholden, and Horn Williamson each brought on lawyers in specialty practices.